While they contend with competition from smaller companies and the illegal market, it might be some time before they can find their footing in the cannabis sector.A Constantly Evolving Market EnvironmentAs the cannabis market landscape is continuously shifting, growth and expansion opportunities emerge alongside these challenges. Karnes of GreenWave Advisors believes that despite the nascent stage of international cannabis market opportunities, investing in them could be prudent, given the uncertainties in U.S. regulation.Challenges Faced by Publicly Traded Marijuana MSOsPublicly traded marijuana MSOs face considerable challenges operating under slowly evolving federal laws and guidelines. Throughout late 2023, numerous publicly traded cannabis multistate operators (MSOs) began withdrawing from regulated markets, primarily due to escalating costs, hefty taxation, and sluggish federal policy reform. Exploring markets like Europe could be rewarding, but until federal legislation aligns with the evolving cannabis culture, the industry will likely continue to be marked by volatility and unpredictability. For example, The Cannabist Co., based in New York and led by CEO David Hart, withdrew after facing a difficult year.
Throughout late 2023, numerous publicly traded cannabis multistate operators (MSOs) began withdrawing from regulated markets, primarily due to escalating costs, hefty taxation, and sluggish federal policy reform.
For example, The Cannabist Co., based in New York and led by CEO David Hart, withdrew after facing a difficult year. At the same time, Trulieve Cannabis Corp. of Florida reduced its operations in Massachusetts.
Several firms may have overreached in their expansion efforts or tried to penetrate an excessive number of markets, each with its own set...
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